How to Make a Cash Offer on a House (WITHOUT Cash)
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- Опубликовано: 4 авг 2024
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What if you knew how to make a CASH offer on a house without cash? You could beat out all the buyers in your area WITHOUT having to spend years or decades saving up every cent to buy a home in all cash. Sellers might pick your offer faster and have more confidence in you closing, allowing you to get better real estate deals and build your investment property portfolio faster. Today, we'll show you why cash ISN’T king, but a cash offer could be EVEN if you’re financing it!
If you’ve ever been beaten out by a cash offer, this episode of Mortgage Mondays is for you. Christian and David will walk through exactly how you can make a cash offer without having cash. But before we get into that, why do sellers want (often lower-priced) cash offers anyway? There are a few BIG benefits to cash offers that most sellers are looking for, and if you can come in with cash, you have a chance to steal the deal. Want to know how you can get ahead of all the other investors by offering “cash” on your next investment property? Stick around; we’ll show you how!
00:00 Is Cash Still King?
01:07 Sponsor: Rent App!
02:10 The "All Cash" Myth
06:55 How Certain are Pre-Approvals?
08:54 Cash vs. Mortgage Timeline
10:25 Benefits of Buying in Cash
13:17 How to Offer "Cash" (WITHOUT Cash!)
The other advantage to an all cash offer is that you can wave inspections
All cash offer means no loan, you have cash in your account and can provide proof. Mic drop
Another example is using a HELOC. I've made a number of cash offers waiving my financing contingency and funded the deal with my HELOC. After closing, I used the delayed financing and applied for a mortgage.
I loved this intro!! 🌮
Never knew you could put in a cash offer and close with financing. Blew my mind
Cash offer, with 20k EMD, wave appraisal contingencies, wave loan contingency, walk through with no concessions after inspection. 15 day close. this should warrant reducing price by 20% for a commercial multifamily (> 4 units) correct?
No lol
emd amount isnt important as % is. 20k on a 200k property? that's awesome! 20k on a 20M property? Hell no. also matters if EMD is refundable or not, such as during inspection period. residential agents generally want 1-3 sometimes as high as 5% EMD. commercial can be same or higher. also, much more common in commercial to do a smaller portion of EMD upfront and then rest after inspection.
Also, your waives can be summarized as "cash, as-is offer" so no need to add all those specifics in there as IMO, just makes you seem like a novice and/or salesy. and lastly, key thing you are missing is inspection duration.
but to answer your questions, you can offer whatever you want. many assets are decreasing in price or, at least, many investors are much more cautious going into deals so sellers are having to be more flexible now. Also, I myself am making WAYYY more seller finance offers to get sellers the net price they want, alongside full/high control of 1 other term. most commonly, sellers want high purchase and downpayment.
First!